Calculating APR for Meat Pools

Meat pools are yield farms that allow LP token holders to receive rewards by staking their LP. Liquidity provision is the backbone of the DEX and is how revenue is generated. Meat pools are designed to incentivise and reward investors who provide liquidity.

Please see our Liquidity guide for details of how to provide liquidity.

Please see our Meat guide for details of how to use the Meat function.

NOTE: While Meat pools give investors greater rewards, they also come with more risk than staking. It is essential investors understand the concept of impermanent loss, which we cover in more detail in our Liquidity guide.

Calculating Rewards

Rewards paid on LP tokens staked in Meat are derived from two sources, both of which are subject to change

LP trading fees, earned when people swap When people complete swaps using the AMM they pay fees, which are added to the liquidity pool in the form of the token they are swapping. Over time, the total number of tokens an LP token represents grows. These fees are earned by LP holders even if their LP tokens remain in their wallet, and are only received when the liquidity is withdrawn.

To calculate the APR of the LP trading fees, we must calculate an estimate of the expected annual fees. To do this we use the following calculations

24hr trading fee = 24hr pair volume * trading fee 0.17%

Yearly fees = 24hr trading fee * 365

Trading fee APR = Yearly fees / liquidity * 100

Meat staking rewards

When available, LP tokens can be staked in a Meat pool to earn additional rewards. These rewards are paid in the form of the stated reward token, and can be harvested at any time.

To calculate the APR of the Meat staking rewards, we can use the same formula we use for Caves staking pools.

Meat staking APR = Annualised rewards (in USD) / total staked funds in pool (in USD) * 100